Algorithmic Trading With I Know First Versus High Frequency Trading

Algorithmic Trading

Competition between investment firms is more intense than ever before as firms are expected to be able to beat the S&P 500 on a regular basis to retain and attract new investors. The market is evolving beyond previously established theories however investors still expect strong and consistent returns. Traditional tools and fundamental analysis are no longer enough to stay competitive in the contemporary market. Investment firms need to stay one step ahead in order to be the first to recognize trends and take advantage of opportunities. To stay competitive they are looking to employ the most advanced tools to enhance performance. Algorithmic trading is now a growing trend filling this void. Algorithmic “Buy” and “Sell” orders account for 60%-70% of the US equity market volume. Previously, only large investment firms and hedge funds were able to utilize these advanced mathematical models but I Know First: Daily Market Forecast, a financial start-up, has developed an advanced self-learning algorithm that is being employed by professionals and retail investors alike.

Memorial Day Special Offer – 15% OFF Every Forecast

Memorial Day Special Offer

memorial-day-872467_960_720
MEMORIAL DAY SALE: for 24 hours only, receive 15% OFF Every Forecast

Stock Market Forecast: Chaos Theory Revealing How the Market Works

I Know First Research | May 8th 2014

How Can We Predict the Financial Markets by Using Algorithms?
Common fallacies about markets claim markets are unpredictable. However, chaos theory together with powerful algorithms proves such statements are wrong. Markets are chaotic systems with complex dynamics, yet to a certain extent we can make valid stock market forecasts. Using these forecasts generated by cutting-edge predictive algorithms together with a careful risk management strategy may give a trader a significant competitive advantage.

Markets Are Complex Systems

Looking at the common fallacies about stock markets, we can see two major groups. The first group is connected to the classical economic theory, which claims that markets are 100% efficient, and as such unpredictable. However, trying to make predictions regarding the markets is useless anyway, as no stock can be possibly be a better deal than another. Both of them are efficient and everybody in the market has perfect information available to them. From our daily lives it is obvious that this does not truly reflect reality. There are people who actually profit trading stocks, which should not be possible in this idealistic market of economy theories.

Short Selling: How, When and Why You Should Short Sell

What is “short selling” and how does it work?

The concept of short selling is often seen as something immoral or alarming to many traders. Traders often assume that because mutual funds and financial planners go long, it is more correct to do. When you short sell you are actually borrowing a stock at a fee, and selling it on the market. At some point the trader “covers” his sale by repurchasing the stock at the current market price, and returning the shares to the lender. If the price is lower the short seller makes a profit, else he makes a loss.

algo trading

I Know First To Democratize AI-Driven Stock Predictions For All

I Know First Research Team LogoThis article was written by the I Know First Research Team.

Summary:

  • Artificial intelligence is being widely used by pig players on the investment scene.
  • While the technology has a lot to offer, advanced models trained by top investment banks are likely to stay out of the reach of broader audience.
  • It is up to ambitious startups like I Know First to democratize AI for all.

premiumRead The Full Premium Article

Subscribe to receive exclusive PREMIUM content here

Stock Picking Algorithms: The Machine Advantage

Tomer Solel is a Financial Analyst at I Know First. He graduated from Cal Poly Pomona with a bachelor's degree in applied mathematics. Stock Picking Algorithms

premiumRead The Full Premium Article

Subscribe to receive exclusive PREMIUM content Here

Portfolio Strategies & Asset Allocation – 86.43% Expected Annual Return Using Algorithmic Allocation

 Summary

  • How to use an existing algorithmic signals system to allocate equity systematically.logo1
  • Building a sample portfolio based on stocks, interest rates and currencies.
  • Actual portfolio back test and returns.

Introduction: 

Allocating your portfolio in a way that maximizes returns and minimizes risk can be tricky. In order to reduce volatility, high yield strategies are often ignored. In theory, if you were able to pick one stock a day you were most certain will go up - in order to maximize expected returns you would only invest in that stock. The downside of course is also maximizing your risk exposure.In this article I will go through a method of allocating funds using the I Know First artificial intelligence system. This will link between algorithmic signals, and actual market buy/sell decisions. Before you continue reading you should decide if any of these points don’t suit you well.
The main advantage of this portfolio allocation is that it is a day trading model which is 100% systematic. Both the investment buy/sell decisions and allocation are based off the signal data; allowing any investor the peace of mind in separating emotion from trade decisions.

 Read The Full Article

 

Artificial Intelligence Stock Trading – Now And in The Future

This article was written by Maria Grishaev, Analyst at I Know First.

Executive Summary

In the last decade, the usage of machine learning and artificial intelligence based trading algorithms grew with the rapid development of computational powers. It makes everyone to wonder - do we take the maximum advantage technology gives us or not. In this article I’m going to discuss the current trend of usage and what are the challenges we are going to need to overcome in order to utilize all the benefits of this advanced technology.

New forecasting serviceRead The Full Premium Article

Subscribe to receive exclusive PREMIUM content Here